Fidelity National Financial (FNF) AI Stock Analysis

• Market Cap: $16.49B
• Dividend Yield: 3.26%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.74
• Revenue Growth: 7.25%
• EPS Growth: 17.55%
• Country: US
• Employees: 23,533
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Specialty
• EPS (TTM): 1.16
• Shares Outstanding: 271,722,560
• 10 Day Avg. Volume: 1,199,868
• 30 Day Avg. Volume: 1,200,267
• PEG Ratio: 0.08
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 2.28
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: 8.54
• 1Y Price Target: $67.33
• Price Target Upside: 11.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $68.00 ▲(12.34% Upside)

Fidelity National Financial's overall score reflects strong financial performance and positive technical indicators. While the earnings call highlighted some challenges, the company's strategic focus and shareholder returns are positive. Valuation is reasonable but not exceptional.

Positive Factors

Strategic Partnership

The partnership with Clear Secure enhances FNF's security in real estate transactions, addressing a growing industry threat and potentially increasing client trust and market share.

Revenue Growth

Strong commercial revenue growth indicates robust demand and effective market penetration, supporting long-term revenue expansion and competitive positioning.

Cash Flow Management

Robust cash flow management ensures liquidity and financial flexibility, enabling strategic investments and shareholder returns, which are crucial for sustained growth.

Negative Factors

Decline in Profitability

The decline in net profit margin suggests pressure on profitability, which could affect long-term earnings potential if cost management is not improved.

Higher Operating Expenses

Rising operating expenses may erode margins and profitability, posing a risk to financial performance if not managed effectively over time.

Reduced Title Margin

A reduced title margin reflects increased cost pressures, which could impact the company's core business profitability if not addressed.

Fidelity National Financial Business Overview & Revenue Model

Company Description

Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty insurance. The company also provides technology and transaction services to the real estate and mortgage industries; and mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. In addition, it offers annuity and life insurance products, such as deferred annuities that include fixed indexed, fixed rate, and immediate annuities, as well as indexed universal life insurance products. Further, the company engages in the real estate brokerage business. Fidelity National Financial, Inc. was founded in 1847 and is headquartered in Jacksonville, Florida.

How the Company Makes Money

Fidelity National Financial generates revenue primarily through its title insurance premiums, which are collected when real estate transactions close. The company earns fees from various real estate services, including escrow and closing services, as well as from its mortgage technology solutions. Additionally, FNF generates income from its ownership in strategic investments and partnerships, particularly in technology and data solutions that enhance the efficiency of real estate transactions. Key revenue streams include title insurance sales, service fees, and technology licensing agreements. The company's strong position in the title insurance market, bolstered by its extensive network of agents and partnerships with real estate professionals, contributes significantly to its earnings.

Fidelity National Financial Financial Statement Overview

Summary

Fidelity National Financial exhibits a strong financial position with consistent revenue growth and solid cash flow generation. Profitability margins have faced slight pressure, but the company maintains a healthy balance sheet with improved leverage ratios.

Income Statement

Fidelity National Financial shows a solid performance with a consistent revenue growth rate of 3.39% in the TTM period. The gross profit margin remains strong at 74.98%, indicating efficient cost management. However, the net profit margin has slightly decreased to 7.91% from 9.26% in the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.50 in the TTM period, indicating a balanced approach to leveraging. Return on equity is strong at 13.24%, showcasing effective use of shareholder funds. However, the equity ratio is relatively low, which could pose a risk if asset values fluctuate.

Cash Flow

Fidelity National Financial demonstrates robust cash flow management with a free cash flow growth rate of 8.66% in the TTM period. The operating cash flow to net income ratio is exceptionally high, indicating strong cash generation relative to earnings. The free cash flow to net income ratio remains stable, underscoring efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.61B	13.71B	11.79B	11.56B	15.64B	10.78B
Gross Profit	10.21B	13.71B	11.79B	11.61B	15.65B	9.02B
EBITDA	2.46B	2.69B	1.46B	2.34B	3.84B	2.17B
Net Income	1.08B	1.27B	517.00M	1.29B	2.80B	1.43B
Balance Sheet
Total Assets	102.33B	95.37B	80.61B	57.11B	60.69B	50.45B
Cash, Cash Equivalents and Short-Term Investments	71.29B	31.05B	26.56B	37.73B	36.36B	30.80B
Total Debt	4.40B	4.71B	4.28B	3.66B	3.51B	3.08B
Total Liabilities	93.51B	86.84B	73.15B	59.61B	51.23B	42.06B
Stockholders Equity	8.82B	7.75B	6.91B	6.12B	9.41B	8.35B
Cash Flow
Free Cash Flow	6.73B	6.67B	6.35B	4.22B	3.96B	1.47B
Operating Cash Flow	6.87B	6.82B	6.48B	4.36B	4.09B	1.58B
Investing Cash Flow	-9.11B	-7.86B	-9.09B	-10.52B	-7.45B	-2.33B
Financing Cash Flow	619.00M	1.76B	3.09B	4.09B	5.00B	2.10B

Fidelity National Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNF, the sentiment is Positive. The current price of 60.53 is above the 20-day moving average (MA) of 59.92, above the 50-day MA of 57.75, and above the 200-day MA of 58.35, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 57.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FNF.

Fidelity National Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESNT	81 Outperform	$6.33B	9.37	12.94%	1.90%	4.79%	-0.76%
MTG	77 Outperform	$6.67B	9.30	14.85%	1.87%	3.26%	12.70%
AIZ	77 Outperform	$10.76B	15.16	13.65%	1.50%	6.42%	-7.74%
FNF	74 Outperform	$16.49B	15.07	14.20%	3.26%	7.25%	17.55%
RYAN	68 Neutral	$13.63B	2,216.52	9.44%	0.91%	22.21%	-30.67%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
FAF	65 Neutral	$6.93B	36.57	3.80%	3.20%	14.28%	-2.87%

Fidelity National Financial Corporate Events

Fidelity National Financial Holds Annual Shareholder Meeting

On April 14, 2025, Fidelity National Financial held its Annual Meeting where shareholders voted on several key proposals. The meeting included the election of three Class II directors, approval of the company’s redomestication from Delaware to Nevada, a shareholder proposal for annual director elections, a non-binding advisory resolution on executive compensation, and the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025.